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Watchdogs see possible 3.5B dollar consumer DTV hit

A survey by the Consumers Union and the Consumer Federation of America reports findings that 39% of all analog TVs currently in use rely solely on over-the-air reception - - some 80M sets - - which would require down-converters to continue being useful once analog signals are turned off. CFA/CU contrasts this to the number 33M typically quoted by the consumers electronics industry. CFA/CU also notes other estimates, from GAO, NAB, and consumer groups, which always seem to have a floor of 65M and can be higher. Figuring conservatively on the existence of 70M down converters at 50 bucks a pop results in the 3.5B dollar total. The National Association of Broadcasters was quick to endorse the report.

RBR observation:
Mark this well. NAB and CFA/CU are generally anything but natural allies - - they have been on opposite sides, loudly, over the issue of broadcast ownership consolidation, among other things. When such frequently opposite viewpoints arrive at a mutual conclusion, it may well be a powerful force to try and resist. And many on the Hill have no intention of resisting. In the House Energy and Commerce Committee, many representatives noted that if constituents' TV signals go away, so likely will the politicians held responsible. Although Democrats want to go farther, both sides recognized this as an issue which needs to be addressed.


Mark Cooper of CFA: "As Congress weighs what, if any, compensation to provide consumers for rendering their televisions useless under the transition, they should rely on estimates that have consistently found as many as 70 million or more affected television sets. Anything less will understate the true impact on consumers and leave them footing the bill."

CU's Gene Kimmelman: "Consumers will already have to bear the inconvenience of acquiring new equipment to keep their otherwise perfectly good TVs working. They shouldn't also have to fork over $50 per set. Since Congress is expected to raise more than $10 billion from the spectrum auction, why shouldn't that money first be used to help consumers with the cost of keeping their TVs working? The first rule Congress must abide by is do no harm to consumers."

NAB's Eddie Fritts: "We're pleased the Consumers Union/Consumer Federation of America survey reinforces the findings of both the NAB and the GAO. We expect Congress will pass a DTV bill this year with a hard date for turning off analog television with minimal consumer disruption. NAB's priority continues to be the prevention of cable companies from blocking consumer access to local TV programming."


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